by Bob Strong

This issue begins a new decade for us at Feed•Lot magazine, as we start our 11th year of publication. A lot has changed since we started the magazine back then, and we hope for the better. Starting with this volume, we are specializing some issues to focus on specific topics relavent to the feedlot industry.

This marks our first Cow/Calf issue. Although we still pledge to provide information relavent to cattle feeders, this issue is packed with articles for the cow man and cattle feeder alike. After all, every hefier and steer in the feedlot came off a cow/calf operation. And with the industry focusing on improving things all the way down the production chain, we hope to provide some information to help all cattlemen acheive that.

The Checkoff Success Story
The beef checkoff-funded Summer 2002 Grilling Promotion indicates retail dollar sales of fresh beef in participating stores increased two percent during the 15-week campaign. This increase was double that of total fresh meat sales, which grew less than one percent during the same time period.

The $2.8 million integrated retail marketing program, included radio advertising, in-store merchandising, and strong public relations activities.

At the same time, 35 state beef councils executed their own Summer Grilling promotions during the campaign, while more than 6,000 grocery stores utilized 3,700 floor graphics, 109,000 cart signs, 800 window posters and millions of brochures and recipes.

As part of the program, additional beef featuring was encouraged for the participating chains. This effectively reduced the retailers' price per pound on beef grilling items by three percent. Along with others, these factors resulted in three million more pounds of beef grilling cuts being sold in the participating markets. This represents a ten percent increase in sales compared to 2001.

"This was the first year the Summer Grilling promotion was conducted, and it provided not only significant results but some excellent guidance for future beef promotions." according to Alan Hess, a beef producer from Alma, Kan., and chairman of the Joint Retail Committee. "We believe retailers will respond even more favorably in future years due to the tremendous visibility and influence we had with consumers."

In spite of the economic situation, beef demand has been growing for the last three years. And it's not in response to what the packers have paid for promotion. They pay only on the cattle they have owned over ten days.

But it's not all about what the packer pays. It would be ideal if they paid for all the promotion, but with the trend to branded product or private label, they will pay for more beef promotion to distinguish their brand from all the others.

There are considerable dollars going into the promotion of branded products now, and this will see a significant increase in the future.

Predicting Tenderness Should Lead to Better Steaks
The research all points to tenderizing as the main trait consumers associate with a good steak eating experience. The industry is moving closer to a higher prediction or guarantee of tenderness. This is taking place in several forms, starting with carcass information from the packer for use in selecting genetic characteristics, ultra sounding and other electronic cattle management systems, and the development of a new non invasive method called Genn STAR Tenderness(R). This pre-harvest DNA-based test indicates that testing and selecting for differences in the Calpastatin gene reduces the number of tough eating steaks by at least half. This all amounts to considerable progress in the direction of producing what the consumer wants.

When thinking in terms of American consumers and their preferences for tender steak, you still have the largest percent of the carcass which are non loin or rib cuts to sell domestically or export. Finding a market for non loin meat is a challenge, but the export market is coming back.

With irradiation of hamburger, the danger of contamination would be less. Where irradiation is in use, sales have increased. This should also eliminate the big national news coverage and beef scares that devastates the beef market.

There are other forward looking factors in the beef industry which make the future look positive. On the one hand there are situations within the beef industry that are not forward working, that need attention. There are disputes or disagreements that need to be settled. Representation of all involved in the beef industry, continuing promotion of beef sales in all markets and a fair profit to all involved should be what it's all about.

Let's Join Together
With the beef industry where it is today, consumption is up and the price for cattle at various stages of production is up. This is as good as it will get to do what Dan Green states in his editorial in the Record Stockman. "We need to separate industry politics from beef promotion, and both from government politics... no one could seriously argue that we shouldn't promote beef to the consuming public." The packer, wholesaler or retailer is not going to do it.

I am in agreement with Dan Green. "It is the ideal time to be getting our ducks in a row on the promotion front, not to be treading water, fussing and fuming."

"It is stupid to let the lawsuits play out in court and have some judge somewhere determine the future of our industry. We should be proactive and get all the private and federal players together and cut a deal."

There are some very serious issues that are, or will be facing the industry where a united front is required to deal with. These issues include environmental and regulatory issues, animal rights, grazing policies, endangered species and more.

There has to be a way for the industry to deal with all issues. Not everyone can or will agree on any one issue, at anyone time, but there has to be a way for the industry as a whole.

Now is as good a time as there will be for all the factions to sit down and give and take a little to work out the best direction for the industry. Reasonable people can always arrive at workable solutions for any issue if they want to.

As Dan Green said and he is correct, "the time and circumstances could never be more right." ©